As hurricanes become more frequent and powerful, know the do’s and don’ts about managing food and other items in your business that may have come into contact with flood water during a severe storm. In addition to discarding more obvious items like food and grains that were contaminated, Steritech also advises you dispose of single-service items, spices and seasonings, foils and plastic wrap, wooden cutting boards and jars or bottles that have screw or caps, or flip or snap tops. The same goes for fabric, carpets and any kitchen equipment that can’t be disinfected.
How easy is it for your employees to check their email via the POS device they use at your restaurant? This happens to be among the most common ways that malware can infiltrate a restaurant’s systems, according to Restaurant Nuts. As cybercrime grows in sophistication, attacks will become more difficult to prevent, but you can take some steps to protect your systems. First, make your expectations clear with employees regarding how they should be using your systems (including what, if any, personal use is allowed) and how to avoid accidental malware downloads. Assign each server a different login code so if a breach occurs, you can track transaction data and more easily identify if problems have occurred during a particular employee’s shift. Beyond your employees, use password managers and two-factor authentication where possible to protect online accounts, as well as firewalls that separate different functions of your business so if a breach occurs, you might be able to limit the damage it can do.
The assault on sugar continues. Food + Tech Connect’s latest U.S. Food and Beverage Startup Investment Report was released recently and reports on the continued decline of sweeteners in the American diet. It said that according to the USDA, per capita sugar consumption has declined for four straight years and is now at a 30-year low. What’s more, alternative sweeteners like stevia and monkfruit have not won over American taste buds. The trend is sparking startup activity as companies develop food and drink designed to replace sugary or artificially sweet items. It’s a trend to bear in mind as you develop dessert offerings and describe menu items. Ingredients that offer inherent sweetness – without any help from sugar, artificial sweeteners or even natural, low-calorie sweeteners – are more apt to win with consumers.
If you serve avocado on your menu, you’re well aware of the rollercoaster ride it has been taking lately with regard to supply and demand. According to a USA Today report, the price of avocados in early July had skyrocketed 129 percent since the same period during the previous year. While restaurants are making adjustments such as diversifying suppliers, raising prices and finding substitutes for the beloved avocado where possible, these are steps that should be taken not just when one key ingredient is in short supply but across the spectrum of a restaurant’s inventory year round. When you monitor your inventory more closely – even in times of plenty – you can more easily ride out times of scarcity. MarketMan suggests you take such steps as tracking food costs throughout the year so you’re more able to spot seasonal fluctuations in price, as well as what you have paid historically. (Team Four can help you with this.) Where possible, fill your menu with seasonal produce to minimize costs – it will also encourage guests to visit you while a favorite item is still available or when a new one is about to be featured on the menu. Partner with your chef to make sure he or she is able to use what’s in season and can minimize costly extras. When it comes to suppliers, try to lock in prices for the long term and don’t hesitate to shop around for better deals when it’s time to renew your contracts. Look around for deals online, particularly for non-perishable items that can be purchased in bulk. Monitor your spending regularly using software with purchasing and ordering management features that can help you stay on top of price fluctuations.
If the restaurant tech landscape doesn’t quite working for your business yet, just wait five minutes and you’re likely to find technology that does. One possible example is the recent partnership of Waitbusters and Postmates. Waitbusters started out as a tech company aiming at eliminating wait times at restaurants but it is now evolving in an effort to work with restaurants that don’t want to hire delivery drivers and also don’t want to pay the high fees charged by many third-party delivery providers. It has integrated its Digital Diner software platform with Postmates and allows operators to turn on the Postmates delivery function when they need it and turn it off when they don’t. This helps eliminate the costs of using an entire third-party delivery platform while giving operators access to off-premise options they may need.
Across the restaurant industry right now, profits range from 0 to 15 percent, according to Toast, and profits between 3 and 5 percent are most common. That doesn’t leave much wiggle room for making errors or adapting to industry changes such as the rising demand for off-premise dining. Operators have to be continuously creative when it comes to finding and mining sources of revenue, whether from new products, services or partnerships. (Note the current fervor around restaurant brands partnering with Beyond Meat, with Subway and Hardee’s being just two of the latest companies to tap into the meat substitute’s popularity.) Restaurant Nuts suggests operators consider options such as joint ventures – for example, partnerships with grocery stores to sell your products can help you promote a special offering while lowering your sales and marketing expenses. Or, as All Food Business suggests, you can partner with a corporation to offer expense accounts, business dinners, client programs or events that can generate income. You can align with a business or charity whose mission complements yours if it helps you to expand your audience, offer a special event you wouldn’t be able to offer on your own, or tap into resources (such as technology or delivery capabilities) that benefit both parties. Within your business, building out a catering menu can help you make the most of your food costs (and minimize waste) while serving lucrative off-premise and corporate customers. Depending on your business, there may also be opportunity to offer retail products like clothing or take-home versions of signature sauces that your restaurant is known for.
Want to win over customers? It’s not about having mouth-watering new specials or transforming your marketing strategy. It’s all about your operations. (At least that seems to be the trend based on recent performance results of a number of major brands.) As reported in Restaurant Business, brands including Dunkin’, McDonald’s, Starbucks and Wendy’s have prioritized operational changes over menu innovation in recent months. Wendy’s has focused on eliminating tasks and training employees to improve speed of service. McDonald’s continues to experiment with automation and has held competitions to find ways to serve guests faster. Dunkin’ has streamlined its menu and changed the layout of stores to improve flow of operations. As for Starbucks, third-quarter same-store sales increased 7 percent and store traffic increased 3 percent, due to what the company says is its focus on simplification – reducing the tasks that need to be completed in-house and shifting employees’ focus to guests. How can you simplify your operation – both with and without technology – to deliver better service?
If you operate a restaurant in or near a college town, you’re in a sweet spot: You have access to a large concentration of food-savvy consumers who are looking for their next meal or snack (and are likely not preparing it themselves). If you deliver food, you’re also more likely to be able to maximize your profits by delivering multiple orders in a single trip. But becoming a campus favorite takes some strategy, particularly if you offer higher-end dishes or are otherwise not an ideal match for a student on a budget. To appeal to the convenience- and cost-driven college consumer, Running Restaurants suggests partnering with the college or university on any programs they offer that allow students to use some of their on-campus dining credits at your restaurant. Encourage word about your restaurant to spread on campus by offering promotions in the campus newspaper, taking part in pop-up food events, and hosting happy hours or other social events. Your online presence is important with this demographic, so make sure you offer online ordering and encourage engagement via social media (your social media handle should be visible on all of your marketing materials). Finally, values and transparency count with this community, so if you have a good story to tell about the local produce you offer, or charities you support, or eco-friendly business practices you have long used, talk it up.
If you have ever visited a bakery at the end of the day and scored some steeply discounted bread, you might appreciate an app like Feedback, which helps restaurants with extra meals on hand at the end of the day connect with hungry consumers. Pymts.com reports that the app uses a dynamic pricing model, so a restaurant might charge $10 for a salad at the start of the day but then adjust the discount based on demand throughout the afternoon. While the app is based in Canada and hasn’t yet made it to the U.S., it offers a more universal lesson on how harnessing data about what you’re selling each day can give you tools to help you run business more efficiently, limit waste, and even attract some new customers. The developer behind the app was inspired to pursue the idea when he was presented with the opportunity to buy discounted pizzas at the end of a restaurant shift. How can you use your tech to connect your extra food supply with guests?
Last year, there were 14 severe weather and climate events that the NOAA National Centers for Environmental Information says cost $1 billion or more. There have been six such events already this year. Since restaurants can be impacted by severe weather events both directly and indirectly, it pays to make sure you have sufficient insurance protection in place as part of your disaster preparedness plan — not to mention your day-to-day operating plan. Your insurance cover needs to consider your business type, geographic region and the outcome of the risk assessment you conduct to identify your restaurant’s greatest vulnerabilities. Your commercial property insurance policy, for example, likely will not cover any vehicles your restaurant operates or protect against flood damage your business sustains during a hurricane. And even if your property or vehicles make it through a severe weather event unscathed, toppled trees or flooding on your street could make it impossible for you to get food to customers. Make sure you review your insurance policies for commercial property, flood protection and business interruption to make sure you’re not leaving your business exposed. Purchasing insurance cover from companies that specialize in the restaurant industry can help. Just make sure you read the fine print carefully — especially on bundled packages that offer broader cover for a lower total price but may exclude specific risks you need to protect against.
How much science is behind your menu? In other words, to what extent do you review your restaurant’s sales, inventory, scheduling, loyalty program and other areas of your operation where you collect data to better understand how these predictive analytics work together? Doing so can help you predict what will sell, so you have sufficient inventory on hand and won’t lose sales opportunities. It will also help you put your ordering on autopilot by considering both the historical and day-to-day sales of your business when you order supplies. By having a better handle on what you will need, you can plan your food preparation tasks accordingly so you minimize your waste. Best of all, being able to predict the cravings of your guests goes far in bringing them back.
Any chef can confirm it: Running a restaurant well can require the skills of a lawyer, doctor, designer, HR manager, mechanic, janitor, and the list goes on. And that’s on top of having to offer an appealing, in-season menu that can be readily adapted to different nutritional needs. While that ever-changing environment can bring interest and variety to each day, chances are you were drawn to the restaurant industry more because of the food than for your ability to negotiate a beneficial contract or identify the best cleaning supplies. Further, the multitasking often required in a restaurant setting can kill productivity: A University of Michigan study found that when a person attempts to accomplish more than one task at a time, productivity drops by 40 percent. Team Four’s Palette program can serve as an extra pair of hands, taking on some of the responsibilities on your plate so you can multitask less and focus more on parts of the business that suit you best. For example, Palette can help you fine-tune your brand, including redesigning your menu or updating your graphic identity on your website, signage and marketing materials. You can also access restaurant equipment, linens, office and cleaning supplies, along with services for managing waste collection and pest control. And in case your menu or inventory needs attention too, we can help you develop new recipes, identify cost-effective menu substitutions, improve your food safety record and offer negotiated contract pricing to help ensure you’re getting the products you need at the best value. You can access the full list of services included in Team Four’s Palette program at www.palettefoodservice.com.
Now that Uber Eats is testing a “Dine-In” feature on its app, expect other third-party delivery providers to follow suit. The feature allows a person to order food at a restaurant, track the process of its preparation so she can arrive at the restaurant in time to eat it, and also leave a tip. The benefits to restaurants could include having to pay a smaller fee to the delivery provider than would be required for third-party delivery, faster table turnover, and the opportunity to offer deals that could attract dine-in guests during slow periods. It remains to be seen how accurate the app’s food preparation tracker will be at peak periods, but if you’re struggling to fill seats, it might offer an opportunity to entice guests to come in and sit down.
Between rising labor costs and falling traffic, there is no shortage of factors squeezing restaurant profits right now. Raising prices to meet margins is one option, but how much are your guests willing to pay before they take their business elsewhere? And what if sales shortfalls are simply due to shifting trends — or your competitor across the street offering a similar product for less? If you use data analytics to manage your food costs, you can uncover helpful information about your inventory. Since your inventory likely eats up 25 to 35 percent of your operating budget, it’s a good place to find lurking costs that can be minimized so you can better manage your spending. To identify opportunities, look at your supply chain and product mix. Do you know how many times your product changes hands and how prices shift with each transition? If you’re looking for help with this and much more, ask about Team Four’s Palette program. We can assess your supply chain, purchases and product mix and then recommend action steps that will help you lower food costs without sacrificing your quality standards. That might involve substituting quality products that still reduce food costs, or identifying trend changes, purchases that aren’t in line with your product specifications, or pricing that doesn’t reflect current trends. Learn more at www.palettefoodservice.com
At a time when even recyclable plastic often ends up in landfills or oceans, the presence of single-use plastic is still widespread in restaurants, most noticeably in the delivery space. The parent of Zume Pizza, the automated pizza delivery company that won accolades for developing a compostable, biodegradable, molded fiber “pizza pod” for shepherding pies to customers, is now helping other companies develop non-plastic packaging alternatives. According to a Forbes report, the company recently launched a new venture to develop plant-based packaging that is designed to have the performance qualities of plastic (and is priced to compete with plastic when used at scale). The packaging, a compostable blend of sugarcane fiber, bamboo, wood pulp and wheat straw, is classified as Type 4 Molded Fiber, the highest grade of molded fiber packaging.
Bring your costs and the market into “Alignment”
Before any product arrives at your door and on the plate of your guest, it passes through many hands and layers of pricing and profit formulas. The system is complicated — and ripe for pricing errors due largely to the manual processes still used to conduct business. One weak link in the supply chain can result in billing errors between manufacturers, distributors and you. Team Four launched a new program — Alignment4 — to help you identify those errors and correct them quickly so you can proactively manage your food costs. The program starts by analyzing receipts from your distributors, then examining product-level detail by invoice for a set amount of time. We can then plug in items that have been specially priced and compare them to what you were actually charged. The program can not only determine if a billing mistake was made, but it can also help you identify purchasing trends so you have a better sense of market values. If you are having a food-cost problem, Alignment4 can analyze your data and determine (soon at a daily speed) if a pricing mistake was made, if there was a temporary change in the market following a hurricane, or if a simple shift in your product mix might solve the problem. It converts data into actionable steps to lower food costs while helping you maintain standards for food quality and guest satisfaction. Gaining this insight into your data (all while keeping it anonymous) through Alignment4 provides other benefits too: You will get a customized inflation and market report that considers your past purchases and product mix, providing you with meaningful information to help you set menu selections, prices and portion sizes. Team Four can also approach suppliers on your behalf and solicit opportunities for you to consolidate purchases with other operators, whether you have 1000 locations or just one. For more information about how Alignment4 can help your restaurant, contact us at email@example.com.
Restaurant investment designed to maximize shared resources
As investors look to bring the next foodservice concepts to fruition, a new trend is becoming clear: Much like the transportation, retail, media and logistics industries before it, foodservice businesses are now attracting technology investment designed to streamline and bring efficiencies to multiple operations at once. For example, Tech Crunch reports that millions of dollars are now flowing into networks of shared kitchens, storage facilities and pickup counters that are likely to become the next big restaurant brands. These networks can help cut back on overhead and make operators more nimble when it comes to hiring labor and conceiving of new menu concepts. The trend is something existing operators can put into practice too: How might you and your neighboring businesses collaborate or share resources to become more efficient and flexible?
New year, new restaurant?
Though last year may have been tough for restaurants, Zagat reports many hotly anticipated openings this year. If you’re planning one, RestaurantOwner.com’s poll of 700 owners may help put costs in perspective. The survey found that on average, owners spend $500,000 in start-up costs when not purchasing land, about $4,200 per seat without a land purchase, and overspend from initial estimates by about 33 percent. To curtail spending, Toast recommends you seek out second-hand equipment, comparison shop and forgo items not absolutely needed at first. Be realistic about staffing costs for recruiting, training, wages, meal comps and time off. You’ll also need to spend on marketing, which may include advertising online or via other media, offering promotional discounts, buying a domain name and hiring a pro to optimize the site or launch an app. What about technology? While tech investments may seem excessive early on, they may also help you manage finances, inventory and guest relations better from the start.
Build business in 2017
Restaurant traffic is expected to be stagnant this year but there’s still plenty you can do to draw a bigger share of those dining out. NPD analyst Bonnie Riggs recommends you boost innovation with a menu and overall experience that feels relevant to guests. Play to consumers’ desire for restaurant food whenever and wherever they like it by offering delivery via whatever means you can make it effective and affordable (just keep consumer costs to $5 or less, Riggs says). Taking that a step further, find ways to allow guests to customize their choices – digital menus and touchscreens, as well as mobile ordering, can help with that. Finally, attract less-frequent guests with the opportunity for rewards – expanding your loyalty program to entice all kinds of users can increase traffic.
It’s time to clean up. For many operators, eliminating chemicals has become more important than counting calories, Food & the Menu reports. That means having an ingredient list that looks like what you’d have in your home kitchen pantry and includes items produced sustainably and without antibiotics – think transparent and authentic. Last year, Panera became the first national restaurant company to assemble a “No No List” of ingredients it was removing from its menu, including artificial colors, flavors, sweeteners and preservatives. It undertook an effort to review 450 ingredients and several levels of its supply chain to identify additives, reformulate 122 ingredients and partner with more than 300 food vendors to replace ingredients and recast recipes. This month, the chain announced its menu was now “100 percent clean.”
Plenty of fish in the sea
According to last week’s Global Seafood Market Conference in San Francisco, there are lots of opportunities in seafood right now. Seafood Source reports that overall, industry analysts at the event said foodservice operators have a great opportunity to entice Millennials with fish, since they value seafood’s health benefits, notice its sourcing and acknowledge that it’s something they may not like to (or know how to) prepare at home. Specific to fish varieties themselves, salmon is expected to continue its rise this year, with a rebound in farmed supply stabilizing or even lowering prices later in the year. Barramundi is also looking good – consider adding it to your menu as a premium option. It happens to be Oprah Winfrey’s favorite, but that’s not all – one chef said it’s a great-tasting fish that freezes well and, because it is a saltwater-raised farmed fish, it often tastes better.
Salads are here to stay
Green salad consumption is growing – as appetizers and entrées, at home and away from home. That’s according to Datassential’s new MenuTrends Keynote Report. That has helped salad-centric concepts grow and premium salad offerings at other restaurants to get attention. What’s helping is the broadening array of ingredients on offer. Far from just greens and raw vegetables, salads are including items like roasted Brussels sprouts and curried cauliflower with increased frequency. Smartbrief reports that Chicago’s Roots Pizza, for example, says its salads “ain’t rabbit food.” Indeed, with 50 ingredients including grilled gyro sausage and pickled fennel, there’s a lot the chain is doing to make salads exciting.
Want to embrace global flavors on your menu? Take a look at the street food scene in your city. Datassential’s Creative Concepts report says street food is finally getting street cred: It found that of the 500 consumers asked about street food, 36 percent love the idea and have visited, and 63 percent would visit if given the opportunity. Make it accessible to your guests by including descriptive language on your menu to encourage guests to try unique items. Make those items (as well as your marketing, signage and décor) as authentic as possible so the experience transports guests to a different place. Offer samples of drinks or dishes that might be a tougher sell, and consider combining two kinds of complementary street food to help you create your own new twist.
Stop a food contamination crisis short
Having a food contamination crisis plan can take some stress out of your business, particularly if you produce food yourself or work closely with local suppliers – a common occurrence in today’s farm-to-table food culture. Food Safety magazine suggests you consider taking these steps to protect yourself: First, acknowledge the risks – one food contamination or adulteration claim is made to the FDA daily and the Food Safety Modernization Act will likely increase that number. Establish a team who can respond quickly and thoughtfully in a food contamination crisis. They should develop a written plan ahead of any crisis that outlines how to handle various scenarios if they occur, such as how and what to communicate in a worst-case scenario, and what procedures can be implemented immediately to prepare for that outcome. Finally, test your plan once a year at a minimum and consider hypothetical scenarios and potential responses.
Where germs lurk in your restaurant
You’re trying to crack down on contamination in your restaurant. Where should you focus your energy first? In Restaurant News, the University of Arizona microbiologist Charles Gerba pointed out the places in a restaurant that harbour the most germs: First, clean that table – he says the sponges or cloths restaurants use typically aren’t soaked long enough in disinfectant to be effective, allowing germs to move from table to table. Silverware is a likely target too, since it picks up bacteria when placed on dirty tables – it’s always best to provide a fresh set when guests arrive and place it on a napkin. Plastic menus and child seats should be wiped down with disinfectant but often aren’t. Lastly, the rind of a lemon is often contaminated, so be aware of how lemons are cleaned and stored for use in drinks and other items.
Tech investment is big in 2017
Last year wasn’t a stellar one for restaurant sales, so what are operators doing to change that? Jonathan Maze of Nation’s Restaurant News says many are making substantial investments in technology. He says at the recent ICR Conference in Orlando, executives spoke about investing in online and mobile ordering and using technology to connect with consumers overall. But by far the biggest technology dollars seem to be going into delivery. Executives from a number of quick-service, fast-casual and polished-casual chains discussed plans to test delivery this year, some through third parties and others by running delivery themselves.
Are you PCI compliant?
If you accept credit cards at your restaurant, you must be PCI compliant – Toast reports that as of January 31, Visa is requiring all businesses (regardless of size) to validate their compliance unless they qualify for an exemption. These are the six categories of PCI compliance: maintaining a secure network, protecting cardholder data, protecting systems against malware, establishing strong access control measures, monitoring and testing your networks, and creating an information security policy. To achieve compliance and maintain it, it’s important that you know the policies and train your employees in order to protect your business and guests from data breaches.
What’s your challenge? Whether you need help developing recipes and concepts, analyzing food costs, fine-tuning purchasing, planning a marketing campaign or managing another aspect of your business, we can provide guidance tailored to your needs. Contact Team Four at firstname.lastname@example.org or 888-891-3103 for more information.
About Food For Thought and Profit
Food For Thought And Profit is brought to you by Team Four Foodservice/Value 4. We offer the latest foodservice trends, news, safety, and technological advances in the industry. We are an outsourced purchasing and logistics company that provides comprehensive supply chain solutions to our customers. Our executive team has many years of foodservice experience and we bring that experience to work for you. We have expertise in all areas of the foodservice sector.